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Adjusting Entry
A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.
Prepaid Expenses
Costs that are paid for in advance and recorded as assets until they are used or consumed, at which point they become expenses.
Asset Account
Represents a resource owned or controlled by a company that is expected to provide future economic benefits.
Expense Account
An expense account tracks the outflow of money to cover operational costs or purchases related to running a business.
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